The Malaysian Employers Federation (MEF) said the proposed increase in the national minimum wage to RM1,500 will kill businesses, which are still in economic recovery mode.
In a statement today, MEF president Syed Hussain Syed Husman said most businesses were not in a position to implement the proposed new minimum wage because they were still reeling from the economic shock brought about by the Covid-19 pandemic and the recent floods.
“The new minimum wage will push up the cost of goods and services. Operational costs will definitely increase, so this is not the right time.”
He said most small and medium-sized businesses were suffering, and even a small increase in costs, like the increase in the minimum wage, could cause them to shut down. “Micro, small and medium enterprises (MSMEs) make up over 90% of Malaysian businesses. The government must consider their survival and sustainability.”
Full article here: https://www.freemalaysiatoday.com/category/nation/2022/02/06/rm1500-minimum-wage-will-kill-small-businesses-says-mef/